Practice
Check your answer
Write your response and explain your reasoning.
Use the Northline worked example as a fact packet, not as authority. Build a research record that another person can repeat.
- State the reporting question and the supplied ASC 320 measurement mandate.
- Record the facts that control the ASC 820 analysis and the facts still open.
- Find the ASC 820 paragraphs that govern the measurement objective, principal market and access, valuation technique and inputs, hierarchy classification, and disclosure starting point.
- Explain how each paragraph applies to the supplied facts.
- State the bounded conclusion and identify the evidence needed before release.
Record the research date, Codification version or access date, searches used, paragraph citations opened, and any cross-references followed.
Compare your reasoning with the worked answer
The research record should preserve the supplied ASC 320 requirement, then connect ASC 820-10-35-2 to the objective, 35-5A and 35-6A to market and access, 35-24A and 35-36 to technique and inputs, 35-37A to the lowest-level significant input, and 50-2 to the disclosure starting point. The record should classify the supplied measurement as Level 3 and leave unsupported valuation, control, and disclosure facts open.